Building Communities, Providing Dividends
In 2016, our investment team continued to use the assets entrusted to Oppenheimer Rochester by our shareholders to strengthen communities throughout the United States and its territories. Our investments in infrastructure and civic projects have created jobs and changed the skylines in countless municipalities.
We are proud that our funds’ assets under management – which equaled $23.4 billion at year-end – are deployed for these purposes, and we believe our shareholders should derive a measure of satisfaction from the role they play in community-building.
The other important dividend, of course, is financial: Throughout 2016, our 20 municipal bond funds have continued to distribute net investment income in the form of monthly dividends. Our funds’ ability to deliver highly competitive levels of tax-free income has been a strong selling point, especially in this lengthy, low-interest-rate environment.
For investors in the top 2016 federal tax bracket, ordinary income, including the interest and dividends produced by taxable investments, is subject to a rate of 43.4%, which includes the 3.8% “Obamacare” tax on unearned income. For these investors, a taxable investment would need a yield of 8% to provide as much after-tax income as a tax-exempt investment with a 4.5% yield. Our online calculator can help with these comparisons.
Learn about our current fund lineup, which now includes 3 national funds, 2 national high yield funds and 15 single-state funds. All 20 Oppenheimer Rochester funds have been designed to help investors reach their goals for tax-free income. For more information on the news, market trends and investing strategies that made a difference in 2016, read our full Annual Overview.
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